Tax Year Prior to 2020: What if my parents claimed me as a dependent in 2019 but I no longer live with them in 2020 can I still claim the stimulus check?

[JTLandCo]

According to the most recent White House reports, they expect the first round of stimulus payments ($1,400) to be deposited as early as this weekend. Those whom the IRS has their banking information on are the first to get paid. So it’s a possibility we start seeing these payments in a matter of days, if not hours. This is according to official reporting from the White House Thursday 03/11/2021

[jt7771]

Thank you for the information! Could you cite your source or link with that info. I just want to be sure.

[JamesG1]

@jt7771

This IRS FAQ states:  

The Internal Revenue Service announced today that the third round of Economic Impact Payments will begin reaching Americans over the next week.

Additional information under Highlights of the third round of Economic Impact Payments states:

In general, most people will get $1,400 for themselves and $1,400 for each of their qualifying dependents claimed on their tax return. As with the first two Economic Impact Payments in 2020, most Americans will receive their money without having to take any action. Some Americans may see the direct deposit payments as pending or as provisional payments in their accounts before the official payment date of March 17.

Because these payments are automatic for most eligible people, contacting either financial institutions or the IRS on payment timing will not speed up their arrival. Social Security and other federal beneficiaries will generally receive this third payment the same way as their regular benefits. A payment date for this group will be announced shortly.

The third round of Economic Impact Payments (EIP3) will be based on the taxpayer's latest processed tax return from either 2020 or 2019. This includes anyone who successfully registered online at IRS.gov using the agency's Non-Filers tool last year, or alternatively, submitted a special simplified tax return to the IRS. If the IRS has received and processed a taxpayer's 2020 return, the agency will instead make the calculation based on that return.

[margotkuszaj]

 JTLandCo

 JamesG1

For the 3rd stimulus check, it's a bit confusing and a gray area with not much info online. So my dad had claimed me as a dependent in 2019 ( also filed my own) but he sadly passed in 2020 shortly after tax season,  yet for the 2020 return that I have no filed yet (waiting for unemployment tax to be applied) -- I'll be filing individually so what my worry is that I won't be eligible to receive the stimulus check as the IRS will based it off the 2019 return and not the 2020 one and being I can't physically get it from my dad as he's no longer alive not sure how I would be able to receive it. I also am qualified if they based it off of the 2020 return yet that wont be processed in time. And ofcourse dependents are qualified until the age of 24 which I was when he filed and passed, but currently 25 therefore another clause to worry about if basing it off of 2019 return.. Any advice is appreciated!

[NCperson]

@margotkuszaj - it's work itself out.   the payment is an advance against the 2021 tax year (not 2020).

What that means is the IRS is going to pay out the stimulus based on 2020 tax information and if that is not available they will use 2019.

But then when you file your 2021 tax return, they will use that information to recalculate your "payment recovery".  if it calculate out to more than your received for the 3rd stimulus, it'll be a credit on your 2021 ta return.  If it turns out the stimulus paid is more than is calculated based on the 2021 tax return, then you don't own it back.

bottom line - if you don't get the stimulus now, it'll be paid to you next year.  Probably not the answer you wanted to hear, but it's not a lost payment just delayed. 

what I described is exactly how the 1st two stimulus payments worked, they were advances against the 2020 tax year and the 3rd stimulus is an advance against 2021. 

[owenenlight]

If the parents already got the stimulus (who claimed me as a dependent) and I'm just filing my taxes for 2020 for the first time ever will it give me a stimulus still? I answered everything on turbo tax truthfully and when I confirm I haven't received it, it gives me more?

I'm just trying to make sure I'm not doing something wrong. It asks if I've received it or if my house hold has received it? My parents can't claim me this year.

[NCperson]

@owenenlight if you check the box that you CAN be claimed as a dependent (and it appears you were claimed), you are not eligible for the stimulus.  

if Turbo tax is giving you stimulus on Line 30 of Form 1040, sounds like you didn't answer the question correctly that you can be claimed on someone else's tax return. 

question: in 2020, did you parents claim you on THEIR taxes? if no, you are fine.  scroll up and read my explanation of 'actuals' and 'estimates'.  (it's not clear from your post what years your parents claimed you on their taxes and the answer to your question is heavily dependent on the specific years they claimed you)

Now, that stated, your parents will receive the $1400 on the 3rd stimulus as they are the taxpayer.  if they want to share that money with you, that is between you and them; the IRS is not involved. 

[VolvoGirl]

@owenenlight   Why can't they claim you this year?  Don't you qualify as their dependent anymore?  

If you were claimed as a dependent in 2019 but not in 2020, you can still get the Recovery rebate credit on your 2020 return even if your parents got it for you. And actually if you were over 17 in 2019 they did not get it by claiming you as a dependent. They only get it for dependents under 17. They don’t have to pay any back.

[Elady]

My husband and I already received the 3rd stimulus payment for ourselves and our 2 recent college grads based upon our 2019 federal tax return (the most recent the IRS has on file for us).  We gave both of them their $1,400.  However, our children are no longer dependents for 2020.  Although, we have not yet filed out 2020 federal taxes, our children have filed theirs.  they received the $1,800 recovery, but they both just contacted me early this morning to say they also received the $1,400 stimulus overnight.  So they now have two $1,400 stimulus payments.  One that came to us based on our 2019 taxes (w/2 dependents), and one based on their 2020 taxes (not dependents).  One would think there would be some sort of cross reference with SSN’s, but apparently not.  

I called the IRS first thing this morning trying to find out how to return the payment for my children who are no longer dependents, but they are not sure what to do.  The woman I spoke with said there should be a reconciliation in 2022 for 2021 (since this is a 2021 stimulus payment), but doesn’t think this will have to be returned.  

This can’t be right????  Any insight?  I don’t want to get stuck with have to pay a penalty.

[DianeW777]

It's possible. The IRS has not provided specific guidance on this at this time and you are not alone in this situation.  Continue to watch the following links that will update as more information becomes available for answers.

• How will the third stimulus impact me?

• EIP3

[GretchenCl]

I think this makes sense, but just checking, so I originally didn’t receive money from CARES because I was a dependent on my parents taxes, but now they aren’t able to claim me on the 2020 taxes because I make “too much” money. This means I will get a refundable tax credit for the CARES act? 
@DavidD66 

[Irene2805]

That's correct.  You will need to file a 2020 tax return, if you haven't already, and indicate that you can't be claimed as a dependent on someone else's return.

@GretchenCl

[reyesa]

My parent put me as a dependent for 2019 taxes but for 2020 taxes I filed independently and my parent didn't claim me as a dependent either but he received the third stimulus check for me and so did I.  Did we make a mistake?

[DMarkM1]

No.  No mistakes made.  Your parents received the third round stimulus based on their 2019 return.  You received a stimulus payment based on your 2020 tax return.  All is correct under the current guidelines.  

[LeeannH3]

What if you're 20 and been moved out and had a job, got a w2 and filed got denyed because mom purposely put me as a dependent. She purposely told me not to file my taxes cause and i quote "you dont need to do adult things" when Ive been living on my own in a camper for over a year at the time. Then she had the nerve to call me greedy.